After reporting numbers that were above expectations in the March quarter, Titan Company has said that recovery in the jewellery segment has been better than expected in the month of May and June despite suffering complete loss in the month of April.
After reporting numbers that were above expectations in the March quarter, Titan Company has said that recovery in the jewellery segment has been better than expected in the month of May and June despite suffering a complete loss in the month of April. In its quarterly update, Titan said that revenues in the last two months were slightly below 20% and 70% when compared to the corresponding months of the previous year. Titan informed the bourses that the company started opening stores on May 6 and so far has re-opened 83% of its stores. Titan is often touted as ace investor Rakesh Jhunjhunwala’s favourite stock. The scrip was trading down 1% to trade at Rs 1,009 per share.
“The recovery has been better than originally envisaged on the back of higher share of wedding jewellery sales, good sales coming from GHS scheme, and investment-led demand leading to higher gold coin sales,” the Tata Group company said. In the previous quarter, the company had informed the bourses that it has seen revenues drop 5%. The average ticket price has gone up, despite deferment in weddings. This has also been helped by the price of gold rising upwards. “Store re-opening and sales recovery are better in non-metros, on the back of lower impact of the pandemic there,” Titan added. During the quarter, jewellry division added 6 Tanishq stores and 1 Mia store on a net basis.
Coming to the watches and wearable segment revenue in May and June months were at 5% and marginally over 20% compared to the corresponding months of the previous year. The eyewear department say revenue at 15% and 35% on-year basis. “Importantly, the recovery rate was about a little over 60%,” the company said.
The big bull of Indian share market, Rakesh Jhunjhunwala, after selling some of his stake in the company now holds close to 5.5% of the total equity shares of the company along with his wife Rekha Jhunjhunwala. His love for Titan dates back to the times when the benchmark Sensex was around 4,500 points. Between April and June, the big bull, along with his wife could have pocketed gains worth Rs 431 crore for his 4,90,50,970 shares of Titan.